Automatic Delivery Oil: Pros & Cons

Automatic heating oil deliveries ensure you'll never run out of oil during a cold wintertanker truck image by alma_sacra from Fotolia.com

For those who heat with oil and live in cold snowy climates, not running out of heating oil is an important consideration. Some homeowners prefer to wait until their tank is less than one-quarter full, and then call various oil dealers looking for the best price. Others would rather establish an automatic oil delivery account and not have to worry about ever running out of oil. Both strategies have advantages and drawbacks.

Convenience

Perhaps the best advantage of automatic oil delivery is the convenience and security of knowing that your home will never run out of heating oil. The driver delivers your oil whether you're home or not, and leaves a bill. If you shop around with individual dealers looking for the best price, you'll usually have to be home and pay for the oil when it is delivered.

As an incentive for automatic delivery, many oil companies guarantee that you will never run out of oil, or the next tank fill up is free. Without a guaranteed delivery program, the responsibility of ensuring you don't run out falls squarely on your shoulders.

Many automatic oil delivery programs/contracts offer the option of spreading your fuel oil costs over equal monthly payments. Now, while it true that you won't be heating your home in July, you will still have a monthly fuel oil payment. However when it's freezing cold in January and your furnace is running almost nonstop, your payment will be the same as it was during the summer. Budget plans do just what they say, they allow you to budget your oil payments on a monthly basis.

Perhaps the least attractive feature of automatic oil delivery contracts is that some do not insulate you from spikes in oil prices. You are charged the current market price for your delivery. Home owners without automatic delivery have the option of waiting for lower summer heating oil prices when demand is extremely low. Some companies offer price protection programs where you can lock in a set price for oil. This is a good option if you expect prices to rise, but it works against you if heating oil prices drop.